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TORONTO, Nov. 17, 2020 /CNW/ - Cliffside Capital Ltd.
("Cliffside") (TSXV: CEP) is pleased to report net
income for the third quarter ended September
30, 2020.
For the three months ended September 30,
2020, the Company reported strong results with net income of
$1.1 million compared to net loss of
$0.6 million for the same quarter
prior year. This is the second quarter in a row that the Company
has reported net income of over a million. The increase in net
income was primarily due to decline in provision for credit losses
resulting from lower delinquency in finance receivables as of the
quarter end.
For the nine months ended September 30,
2020, net interest income increased by $0.6 million, or 6% to $10.7 million. For the same period, Cliffside
reported net financial revenue before credit losses of $5.6 million compared to $5.7 million in the corresponding period prior
year, which also included a one-time gain of $0.8 million.
"We're extremely pleased with the continued demonstration of the
resiliency of our business model. The underlying credit performance
within the partnerships has been strong and levels of payment
deferrals remain below pre-COVID levels. While the severity and
impact of initial restrictions has certainly eased, there remains
uncertainty within the general macroeconomic environment and we
will manage carefully through this next phase remaining cautiously
optimistic to build upon the momentum of our results over the last
two quarters" said CEO Steve
Malone.
"It's a unique landscape where stimulus and relief programs are
leading to lower repossession rates coupled with supply demand that
is resulting in higher used car prices at auctions. These factors
along with higher credit quality of new originations, lower funding
costs, and significantly lower delinquency rates positions us well
to finish 2020 on a positive note" said Malone.
Cliffside is also pleased to announce that the limited
partnerships renewed their respective funding facilities with a
Canadian Schedule 1 Bank and a Canadian Life Insurance Company
allowing for additional funding of $90
million through the end of June
2021. Access to additional funding enables the partnerships
to continue growing their portfolios of fully serviced non–prime
automobile loans, and fuels Cliffside's strategy of building assets
under management in the non–prime lending market.
To date, Cliffside has invested $6.7
million in two limited partnerships, each of which invests
in fully serviced non–prime automobile loans which are funded
through facilities with institutional lenders. Cliffside is
targeting growth in assets under management and growth in returns,
while maintaining an acceptable level of credit risk to ultimately
deliver attractive yields to shareholders.
Further information on Cliffside's September 30, 2020 financial results can be found
at www.cliffsidecapital.ca.
About Cliffside
Cliffside is focused on investing in
strategic partnerships with parties who have specialized expertise
and a proven track record in originating and servicing loans and
similar types of financial assets. Cliffside's strategy is to
generate revenue as an investor, affording its shareholders an
opportunity to invest in the growing alternative lending sector
with the potential for attractive yields and minimal operational
risk while earning a reliable total return. For more information,
see Cliffside's filings on SEDAR at www.sedar.com.
CAUTIONARY STATEMENT REGARDING FORWARD–LOOKING
INFORMATION: This news release includes certain
"forward–looking statements" under applicable Canadian securities
legislation. Forward–looking statements include, but are not
limited to, statements with respect to the business and operations
of Cliffside. Forward–looking statements are necessarily based upon
a number of estimates and assumptions that, while considered
reasonable, are subject to known and unknown risks, uncertainties,
and other factors which may cause the actual results and future
events to differ materially from those expressed or implied by such
forward–looking statements. Such factors include, but are not
limited to: general business, economic, competitive, political and
social uncertainties; the results of operations; potential for
conflicts of interests; as well as volatility of Cliffside's common
share price and volume. There can be no assurance that such
statements will prove to be accurate or complete, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward–looking statements. Cliffside disclaims any
intention or obligation to update or revise any forward–looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Cliffside Capital Ltd.